Government and SMEs Frustrated by Failure to Postpone Serious Accident Punishment Act

Urgent Call for Passage of the Amendment Bill

As legislation to further postpone the application of the Serious Accidents Punishment Act to small and medium-sized workplaces with fewer than 50 employees for two years has failed, related ministries and the small and medium business sector have once again urged the National Assembly to pass the amendment.

On January 15, when the January extraordinary session of the National Assembly began, Lee Jeong-sik, Minister of Employment and Labor, and Oh Young-joo, Minister of SMEs and Startups, visited a knowledge industry center in Seo-gu, Incheon, to hold a "Livelihood Field Meeting." Six representatives of small and micro business owners from Incheon, including those in the root industry of surface treatment, cosmetics manufacturing, and construction, participated in the meeting. Held about ten days before the full enforcement of the Serious Accidents Punishment Act on the 27th, the meeting featured appeals regarding the poor manpower and budget conditions of small and micro businesses.

On the 5th, at the 2024 Labor-Management-Government New Year's Meeting held at Seoul Central Post Office, Lee Jeong-sik, Minister of Employment and Labor, is delivering a greeting. Photo by Heo Young-han younghan@

The owner of Company A, which performs surface treatment, said, "The law's application is imminent, but there has been no meaningful discussion, which is frustrating," adding, "I hope the National Assembly will carefully consider the difficulties of small-scale companies in the root industries that support our economy and conduct in-depth discussions and processing during the remaining period."

The owner of Company B, which performs electrical work, also pointed out, "Since there will be no limit on the contract amount when the law is expanded, practically all construction projects should be considered subject to the law," and added, "Unlike manufacturing, it is questionable whether all obligations, which are difficult even for large companies to comply with, can be fulfilled at small construction sites that operate busily within a short timeframe." There were continued appeals that if the law amendment fails, small and micro business owners, already struggling due to economic downturn, may be driven into a dead end due to increased safety cost burdens.

Enacted in January 2021, the Serious Accidents Punishment Act stipulates criminal punishment for business owners if workers are injured or die due to serious accidents at the workplace. From the 27th, it will be expanded to apply to companies with fewer than 50 employees (5?49 employees). The government had pushed for a law amendment to postpone the expansion of the application for two more years, citing the burden and lack of preparation of small and micro enterprises, but the amendment failed to pass at the plenary session of the National Assembly on the 9th.

The government has pressured for a postponement of the law's application, arguing that representative punishment for serious accidents could lead not only to business closures but also to job reductions, causing harm to workers. After the plenary session's failure on the 9th, the government urged swift passage of the amendment, stating that ignoring the practical difficulties of small and micro enterprises is unacceptable.

At the meeting, Minister Lee said, "Since the law was enacted in 2021, the government has supported the establishment of safety and health management systems for half (450,000) of the approximately 837,000 workplaces with fewer than 50 employees, but the current preparation and response situation is insufficient to apply the law as scheduled," urging the National Assembly to pass the amendment. Minister Oh also requested the National Assembly to conduct prompt discussions and swift legislation again, saying, "In workplaces with fewer than 50 employees where the representative handles sales, production, general affairs, and multiple roles, unlike large companies, there is insufficient capacity to cope with complex regulations."